- Previously, the parent company denied any ties to the US subsidiary.
- Senators Warren and Van Hollen point out it was a deliberate lie
- They demand that the Ministry of Justice conduct an investigation and take appropriate measures.
Senator Elizabeth Warren and her colleague Chris Van Hollen have called on the Justice Department to investigate Binance’s statements to Congress. In early March, members of the management of the exchange, as well as its American division, completely denied any links between the two companies.
The letter was published by the portal Bloomberg. Apparently, Senator Warren sent it to Attorney General Merrick Garland on Wednesday, June 7th. In it, the politician stresses the importance of a potential violation by the management of the two companies.
Here we are talking about the response of Binance and Binance.US to a call from lawmakers to clarify business practices between the global platform and its affiliate. He followed after this proceedings.
Senator Warren believes that top management lied to Congress and also undermined the legislative process in the development of industry regulations. And this is “very serious,” as the politician said.
Interestingly, neither Zhao nor the majority of the Binance leadership are US citizens. It is not clear what potential sanctions from the Ministry of Justice could be in this case.
But it is possible that they will still be, since the case against the stock exchange is extremely high-profile. Recall that in its lawsuit against the exchange, the SEC stated that both the global and the American platforms sent clients’ money to Zhao funds.
At the same time, he himself urged employees to keep quiet, since their words can be used in court. Moreover, part of the internal correspondence has already been leaked to the network.